Tax credits renewal deadline looming
Universal Credit (UC) is replacing the old tax credits system slowly but surely. However, tax credits are still applicable to existing claimants. Why is July a crucial month for recipients?
Where an individual or couple is in receipt of Working Tax Credits and/or Child Tax Credits, they will be unaffected by the UC rollout until they:
- choose to make a claim for UC
- need to claim another benefit that UC has replaced, such as housing benefit; or
- have a change of circumstances that ends the tax credits claim and they need to make a new claim for support.
Until then, the old system of claiming and renewing needs to be followed. In some cases, the renewal will be automatic and the claimant will simply receive a renewal notification. But some claimants need to complete a renewal pack, which is sent out in June each year. In a 1 July press release HMRC stated that just under 500,000 forms were outstanding, and emphasised that these must be completed by 31 July in order to continue receiving payments.
Any changes in circumstances must be reported. However, the press release confirmed that employed claimants do not need to report any temporary falls in their working hours as a result of coronavirus. They will be treated as if they are working their normal hours for up to eight weeks after the furlough scheme closes. Grant payments received under the Self-Employment Income Support Scheme do need to be reported though.
Related Topics
-
5 April deadline approaching for key tax relief claims
With the end of the 2025/26 tax year now less than seven weeks away, business owners and company directors should remember that several valuable reliefs and elections must be made before 5 April. Which opportunities are about to close?
-
HMRC reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.